Bearish candlesticksCandlestick chart analysis allows us to recognize current sentiment on market. Negative emotions are shown on chart. Price movement representing bearish emotions is charted by bearish candlestick patterns. These patterns can consist of one, two or more candlesticks. I personally think that for short term trading is important knowledge of these two types of negative candlesticks patterns:
Here are examples on stock charts: This first chart presents that price tried to go through
resistance
of
downtrend
line and
50EMA
, but every time dived again under them. Really strong signal that stock is under selling pressure. Also notice high number of long upper shadows candlesticks on this chart. 
This chart shows how long red candlesticks developed every time price touched
downtrend
line. 
If you will find such bearish candlestick near important level of
resistance
, then it is confirming signal. Signal that current uptrend is at the end and some downtrend move will be in place soon. Return from Bearish candlesticks to stock chart analysis
|
